PIPI: Industrial Gas Price Will Not Decrease As long as Regulation in Oil and Gas Sector is Complicated

By : Ridwan And Aldo Bella Putra | Wednesday, March 14 2018 - 20:00 IWST

Chairman PIPI Raswari (dok Industry.co.id)
Chairman PIPI Raswari (dok Industry.co.id)

INDUSTRY.co.id - Jakarta, The Association of Professional Engineers Indonesia (PIPI) sees the decline in gas prices for industry will not happen if the regulation or regulation of the oil and gas sector (Oil and Gas) is still complicated.

Chairman of PIPI, Raswari said the current regulation of oil and gas sector is still very complicated. Until now still thousands of regulations in the oil and gas sector is very influential on the growth of oil and gas industry in Indonesia.

"Regulation must be cut, stop export and allow import, finished gas problem," Raswari said when met Industry.co.id in Jakarta, Wednesday (14/3/2018).

He added, the core of all the problems of industrial untuik gas in the country is the regulation. According to him, if forced also will not be able to go down.

"Why cannot?, Because the rules of the mouth of the mine is US $ 5, plus how much transportation, how many regastification, there is a broker fee or not there, now it ranges between US $ 7-9 per MMBTU," he explained.

Furthermore, he said, to solve the problem of industrial gas in the country, the government should liberate foreign investors to make oil refinery in Indonesia. "Currently there is no swata oil refinery," said Raswari.

In addition, he added, the government must also free the private sector to be able to make LNG Plant. "Invite them (Private) for investment, obviously if it is made we buy, make long-term contract agreement like LNG, that's just a matter of business only, they want to be free to make LNG Plant and Oil Refinery in Indonesia," said Raswari.

Raswari expects the government to immediately build oil refineries and LNG Plant so that the problems of industrial gas will continue to be overcome in an effort to boost Indonesia's manufacturing industry.

As is known, already a year more since President Joko Widodo issued Presidential Regulation (Perpres) No.40 of 2016 on the determination of natural gas prices, and then coupled with Presidential Instruction on October 4, 2016 for industrial gas price of US $ 5-6 per MMBTU. In fact, until now the price of gas for industry is still in the range of US $ 9-9,5 per MMBTU.

The decline in industrial gas prices is believed to spur national economic growth, while too high gas prices today are considered not only undermine the competitiveness and domestic products in the market, as well as making the line of investors refrain from investing in Indonesia to invest in industrial sectors .

News Comment

Today's Industry

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…